BUSINESS

Federal Government made a Decision Prescribing Maximum allowed price Margins in Oil Trade

 

Federal Prime Minister Fadil Novalic revealed on Thursday that the Federation of Bosnia and Herzegovina Government has made a decision prescribing maximum allowed price margins in oil trade, which ultimately means lowering oil prices in this entity.

In the past, there has been a radical fall in oil prices on the world market, and prices at many gas stations in the Federation have remained the same because some traders have ignored the world market.

Some gas stations reported even very high prices and extremely high margins, reaching as high as 0.50 BAM per liter.

“That is why today we stated at the session that the maximum margin for retail is 0.25 BAM per liter. This effectively orders the reduction of oil prices, i.e., their adjustment to the prices on the world market.

At the same time, given that some oil companies largely control both retail and wholesale trade, we have also prescribed a maximum wholesale margin of 0.06 BAM. This is no interventionism, but the prevention of monopoly and unfair competition.

We promised that no one should profit from this crisis and that is what we are doing. The Federation, cantonal, city and municipal inspections have been tasked with monitoring the decisions on the reduction of oil prices,” said Novalic.

 

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